Optimal Simple Rules for Fiscal Policy in a Monetary Union

The paper discusses the stabilizing potential of fiscal policy in a dynamic general-equilibrium model of monetary union. We consider a small open economy inside the currency area. We analyze the demand and supply effects of direct taxation, indirect taxation and government spending and derive optimal simple rules for fiscal stabilization of a technology shock. Fiscal policy achieves substantial macroeconomic stabilization. Simple public-expenditure rules show the highest degree of both output and inflation stabilization. The implementation lag substantially weakens output stabilization, but hardly affects the stabilization of prices. Out-put-oriented rules imply less instrument inertia than inflation-dominated rules. The implemen-tation lag leads to higher coefficients for inflation relative to output in the optimal rule. Com-pared to the single-instrument approach the simultaneous optimization of two instrument rules implies only little additional stabilization gains.Fiscal policy, monetary union, simple policy rules

How CEO Values and TMT Diversity Jointly Influence the Corporate Strategy Making Process

Understanding managerial behavior and its underlying motivations is of key interest in times where the role of business in society is generally viewed critically. While CEO influence on strategy making processes is almost undisputed, little attention has explicitly been paid to how CEO values and the characteristics of the top management team (TMT) interact in shaping corporate strategy making. This is surprising if one follows the assumption that top managers who work closely together will by necessity influence each other's actions. Hence, we would expect the CEO-TMT interface to be vital in understanding how leadership influences strategy making. To address this, we propose a model in which the personal values of the CEO have a direct effect on the characteristics of corporate strategy making processes yet where this association is moderated by TMT diversity. We test the model with data from Austria and Germany obtained through a large-scale survey conducted in spring 2015 and a follow-up survey conducted in fall 2015 and find general support for our model. CEO values geared towards self-transcendence (as opposed to selfinterest) seem to be associated with more formal strategy making processes, while values geared towards openness to change (as opposed to conservation) are found to be associated with more flexible and less externally open ones. TMT diversity moderates all of these relationships. Our results add to upper echelon theory as well as to strategy process research and highlight promising avenues for future research

Optimal Simple Rules for Fiscal Policy in a Monetary Union

The paper discusses the stabilizing potential of fiscal policy in a dynamic general-equilibrium model of monetary union. We consider a small open economy inside the currency area. We analyze the demand and supply effects of direct taxation, indirect taxation and government spending and derive optimal simple rules for fiscal stabilization of a technology shock. Fiscal policy achieves substantial macroeconomic stabilization. Simple public-expenditure rules show the highest degree of both output and inflation stabilization. The implementation lag substantially weakens output stabilization, but hardly affects the stabilization of prices. Out-put-oriented rules imply less instrument inertia than inflation-dominated rules. The implemen-tation lag leads to higher coefficients for inflation relative to output in the optimal rule. Com-pared to the single-instrument approach the simultaneous optimization of two instrument rules implies only little additional stabilization gains

Reconciling the 2 TeV Excesses at the LHC in a Linear Seesaw Left-Right Model

We interpret the 2 TeV excesses at the LHC in a left-right symmetric model with Higgs doublets and spontaneous $D$-parity violation. The light neutrino masses are understood via a linear seesaw, suppressed by a high $D$-parity breaking scale, and the heavy neutrinos have a pseudo-Dirac character. In addition, with a suppressed right-handed gauge coupling $g_R / g_L \approx 0.6$ in an $SO(10)$ embedding, we can thereby interpret the observed $eejj$ excess at CMS. We show that it can be reconciled with the diboson and dijet excesses within a simplified scenario based on our model. Moreover, we find that the mixing between the light and heavy neutrinos can be potentially large which would induce dominant non-standard contributions to neutrinoless double beta decay via long-range $\lambda$ and $\eta$ neutrino exchange.Comment: References added, typos fixed, matches published version, 12 pages, 4 figure